Wildfire Prevention 2.0: How Insurers, AI Technology, and Communities Are Reducing Risk Year-Round
Wildfires have moved beyond a seasonal catastrophe and are now a year-round crisis. They’re burning hotter, moving faster, and leaving less time to react.
In 2024 alone, flames tore through more than 11 million acres across the U.S. California choked under smoke for 118 straight days. Fires like the Palisades and Eaton caused damages topping $250 billion, leaving behind charred communities and rising insurance costs.
For years, the focus was on fighting fires once they started and helping people rebuild afterward. But as these threats grow, it’s clear that simply picking up the pieces isn’t enough. Today, insurers and technology leaders are moving from reaction to prevention, using advanced tools and community strategies to better safeguard homes and natural environments.
A new chapter for insurance
In recent years, wildfire-related losses have skyrocketed. According to Munich Re, they’ve jumped more than 400% over the past decade. In California alone, over 235,000 homeowners have seen their coverage canceled because their properties were deemed too risky. Some insurers have left high-risk areas entirely.
Rather than pulling back, many insurers are taking a different path. They’re moving from being reactive payers to forward-thinking partners. By investing in new technology and encouraging homeowners to protect their properties, insurers are working to prevent losses before they happen.
This evolution marks a major change in the industry's role, emphasizing public safety and community strength over simple claims payouts.
The advantage of early warning
Early detection is changing the game. AI-powered cameras, drones, and advanced environmental sensors can spot smoke or heat signatures before fires get out of control.
A telling example is Colorado’s Wellington Fire in 2024. AI systems detected smoke 21 minutes before the traditional dispatch system responded. That extra time helped crews contain the blaze to just a quarter-acre.
In Douglas County, Colorado, lightning sparked a fire in rugged terrain. Thanks to real-time video and data from AI-enabled cameras, emergency managers acted quickly and stopped the fire from turning into a major disaster.
Early warnings do more than limit flames. They allow for quicker evacuations, reduce danger to first responders, and protect critical infrastructure and ecosystems.
Proof on the ground
These proactive approaches aren’t theoretical. They’re working right now.
Take California’s Caldor Fire. Homeowner Mike Sullivan had upgraded his home with ember-resistant vents and automated sprinklers through a partnership with Liberty Mutual and Ember Defense. As flames approached, his defenses activated on their own, saving his home while three of his neighbors lost theirs. Liberty Mutual’s pilot program has seen a 63% drop in fire-related losses, showing how preparation pays off.
In Oregon, Pano AI and Portland General Electric have rolled out AI camera networks across several counties. These systems often detect fires before anyone calls 911 or lookout towers see smoke, giving firefighters a critical edge.
In Montana, Risk Strategies has partnered with Pano AI to install cameras in high-risk mountain areas. In some cases, firefighters gained nearly an hour of advance notice. That window can determine whether a fire is quickly contained or becomes a widespread catastrophe.
Empowering homeowners and local action
While high-tech tools make headlines, everyday actions at home matter just as much.
Simple steps homeowners can take include:
- Clearing brush and debris to create a defensible space.
- Installing fire-resistant roofing and ember-resistant vents.
- Adding automated exterior sprinklers.
- Choosing fire-smart landscaping.
More insurers reward these efforts with discounts ranging from 5% to 25%. Beyond savings, these steps create a culture of shared responsibility, where neighbors collaborate to protect entire blocks or communities.
Some neighborhoods are even exploring community-level wildfire risk scoring, encouraging everyone to pitch in. When residents coordinate defensible space efforts and maintain ongoing communication, their collective impact is far stronger than individual actions alone.
Moving beyond payouts
Beyond individual and neighborhood efforts, insurers themselves are redefining their roles. People have traditionally seen insurance as a tool to rebuild after loss. But as wildfires grow more severe, insurers are prioritizing risk reduction and prevention to help communities avoid devastation in the first place.
Investing in detection systems and funding mitigation projects helps reduce the scale of potential disasters, while motivating homeowners to act supports long-term community resilience. This approach also keeps insurance options available in high-risk areas and helps keep premiums from skyrocketing.
Being proactive builds trust. Homeowners feel more secure knowing their insurers are working to protect them, not just writing checks after tragedy strikes.
Shared responsibility, stronger communities
Wildfires are no longer rare seasonal events — they’re a constant, escalating threat. Managing them requires shared responsibility and strong partnerships among homeowners, insurers, tech companies, utilities, local fire departments, and community leaders.
At the core of this new approach is collaboration. Insurers and tech firms are moving beyond paying claims to investing in prevention, detection, and education. Fire departments and utilities are reinforcing infrastructure and sharing data to reduce ignition risks. By breaking down silos and aligning priorities, these groups can act quickly when every second counts.
On the ground, homeowners are creating defensible spaces, installing fire-resistant materials, and using neighborhood risk scoring. Insurers reward these efforts with discounts, fostering a culture where neighbors work together to protect entire blocks, not just individual homes.
This collective effort rests on four pillars:
- Fast, accurate detection that provides critical time to respond.
- Physical mitigation at individual and community levels to reduce ignition and spread.
- Education and incentives that empower meaningful action.
- Strong partnerships that enable unified, effective responses.
While no single strategy can fully prevent wildfires, these combined efforts greatly strengthen community resilience. By stepping up together, we shift from reactive recovery to proactive prevention, creating safer, more adaptable neighborhoods ready for tomorrow’s challenges.
Prevention as the new normal
Embracing proactive prevention means shifting from waiting for destruction to stopping fires before they become disasters. With better technology, stronger partnerships, and engaged residents, we can build communities that are strong, adaptive, and prepared.
Act today. Invest in prevention to create neighborhoods that are more resilient and ready to face tomorrow’s challenges.
About the Authors
Jeff Kaplan is Senior Vice President, Risk Strategies Private Client Group. Jeff is a seasoned insurance professional with over two decades of experience specializing in property and casualty insurance. He currently leads the Family Office Practice in the Northeast at Risk Strategies Company, focusing on high-net-worth individuals and families. His expertise spans various sectors including large property schedules and resorts in catastrophe prone areas, maritime, aviation, and fine arts, making him a go-to expert for complex insurance needs.
Arvind Satyam is the Chief Commercial Officer & Co-Founder of Pano AI, the leader in wildfire early detection. He is responsible for the company’s go-to-market strategy, overseeing sales, marketing, customer success, partnerships, and regulatory engagement. Prior to Pano AI, Arvind held senior leadership roles at Cisco, where he led business development for the $13B Public Sector.
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